Central indiana intermodal service
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Central Indiana Intermodal Service. Growth and Network Expansion Opportunities for BNSF February 12, 2008. Indiana’s Intermodal Team. Here to make the case for run-through service to CSX Avon State: IEDC Ports of Indiana INDOT Regional Indy Partnership Conexus Indiana. Industry:

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Central Indiana Intermodal Service

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Central indiana intermodal service

Central Indiana Intermodal Service

Growth and Network Expansion Opportunities for BNSF

February 12, 2008


Indiana s intermodal team

Indiana’s Intermodal Team

Here to make the case for

run-through service to CSX Avon

State:

  • IEDC

  • Ports of Indiana

  • INDOT

    Regional

  • Indy Partnership

  • Conexus Indiana

  • Industry:

  • Browning Investments

  • Duke Realty Corporation

  • TJX Corporation

4


Goal enhance access to global markets

Goal: Enhance Accessto Global Markets

Indiana recognizes:

  • Intermodal connections are keyto global competitiveness

  • Intermodal logistics parks arethe trade hubs of the future

  • West Coast connection critical to Indiana

  • BNSF is the premier intermodal carrier and the preferred service provider

5


Value proposition for bnsf opportunity for growth

Value Proposition for BNSFOpportunity for growth

Run-through service from LA/LB ports

to CSX Avon Yard benefits BNSF:

  • Significant growth of headhaul & backhaul volume

  • Minimal CAPEX and operating risk

  • “Plug and play” logistics park located in a premier distribution location

  • Complements existing network & Chicago ramps

    Avon provides strategic advantage for BNSF

6


Proposed service solution

Proposed Service Solution

Run-through service to Avon from LA

  • Connect to CSX in St. Louis

  • Possible mix with domestic (Clovis)

  • 5-day a week frequency in both directions

    Key Assumptions:

  • Economics work for carriers & shippers

  • CSX agrees to trackage & terminal deals

  • Operational issues are manageable

7


Growth drivers for bnsf

Growth Drivers for BNSF

Central Indiana: Best location to serve greatest number of consumers, producers & exporters

  • Median center of U.S. population

  • Same-day delivery to over 50% of U.S. population

  • Heart of manufacturing, agriculture, hardwood production

  • 15% of U.S. freight by value touches Indiana

    • 12% by tonnage

  • Indiana ranks 2nd in pass-thru tonnage, 5th overall

  • Least congested infrastructure

    • 5.3% peak congestion vs. 15.3% national average

    • “Major Moves” fully funds 10-year transportation plan

8


Indiana the optimal distribution location

Indiana: The OptimalDistribution Location

Median Center of U.S. Population


Distribution growth forecast

Distribution Growth Forecast


Distribution growth forecast1

Distribution Growth Forecast


Indiana export manufacturing powerhouse

Indiana: Export &Manufacturing Powerhouse

  • Exports totaled $22.6 billion in 2006

  • 1st in automotive manufacturing growth

  • 3rd in car/truck production by 2011

  • 1st in manufacturing output per capita

  • 1st in value-added manufacturing

  • Honda building newest assembly plant in Greensburg, IN.

  • Only state with 2 Toyota production sites


Indiana s manufacturing logistics economy

Indiana’s Manufacturing & Logistics Economy

Source: PCRD using CEW data provided by the Indiana Business Research Center (IBRC)


Indiana epicenter of u s manufacturing

Indiana: Epicenterof U.S. Manufacturing

14


Indiana automotive center of north america

Indiana: Automotive Centerof North America

  • Car/truck assembly plants within650 milesof Indianapolis

  • 84% ofNorth Americanauto production


Manufacturing locations

Manufacturing Locations


Distribution center locations

Distribution Center Locations


Recent large business investments in indiana

Recent Large BusinessInvestments in Indiana


Intermodal freight flow study

Intermodal FreightFlow Study

Browning-Duke commissioned studyto estimate baseline internationalintermodal flows to Central Indiana

  • Conservative methodology combined best available data sources (Customs/US Census,Reebie Transearch)

    Findings:

  • 80% of Central Indiana’s containerized imports move through West Coast ports (predominantly LA/LB)

  • 150K-200K annual inbound (drayage) loads

    • Estimated value $5.5 billion

      • Likely a low figure based on pro-rata share of U.S. imports

    • Tremendous backhaul growth opportunities

    • 300K-400K annual two-way lift potential

    • Volume easily supports 5-day/week service

19


Csx avon yard

CSX Avon Yard

Located in heart of state’s largest

distribution submarket

  • IM ramp can handle 100K annual lifts today

    • Current volume is approx. 30K lifts

  • Expansion to 300K lifts with modest CAPEX

  • Adjacent to AllPoints Midwest 930-acre (expandable)world class logistics park

    • 12 million sq. ft of DC/light industrial space

  • Hendricks County has absorbed DC space faster than Alliance; 25M feet in 15 years

20


Central indiana intermodal service

CSX Yard

AllPoints Midwest

Hendricks County, IN

World-Class Trade Infrastructure


Indiana proposal

Indiana Proposal

  • “Take or Pay Train” arrangement

    - Minimize risk to BNSF

  • Conexus Indiana will organize Shippers Alliance & market service

  • Improvements to CSX Avon facility

    - Developers, local governments alreadyjointly planning improvements with CSX

  • State/Ports of Indiana support

    - Potential Incentives, Financing, Foreign-Trade Zone

22


Going forward

Going Forward

  • BNSF reaction

  • Commitment to evaluate concept

  • Plans for future dialogue

  • How do we move forward?

    Proposed Next Step:

  • BNSF invited to Indiana for meetingswith key leaders and tour of region


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